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TORONTO, Sept 8 (Reuters) - The Canadian dollar jumped to a session high against the U.S. currency on Wednesday after the Bank of Canada raised interest rates, as expected.
The Canadian dollar CAD=D4 rose to C$1.0441 to the U.S. dollar, or 95.78 U.S. cents, up from C$1.0486 to the U.S. dollar, or 95.37 cents, just ahead of the policy announcement. It was also firmer than Tuesday's close at C$1.0480 to the U.S. dollar, or 95.42 U.S. cents.
The Bank of Canada raised its benchmark interest rate for a third consecutive time by 25 basis points, to 1 percent, but cautioned that a weak U.S. economy would hamper Canada's recovery. For more see [ID:nBCL8KE615].
Short-dated government bonds turned lower, while longer-dated maturities extended the decline after the announcement. (Reporting by Ka Yan Ng; Editing by James Dalgleish)